What is IMMEX and when does it make sense for your company?

IMMEX stands for Manufacturing, Maquila and Export Services Industry (Industria Manufacturera, Maquiladora y de Servicios de Exportación). It is the most widely used incentive program for Mexican exporting industry because it solves a concrete problem: paying duties on inputs that will later be re-exported.

The problem it solves

Imagine a company importing electronic components from Asia, assembling them in Mexico, and selling the finished product to the United States. Under the standard regime:

1. When importing components, the company pays VAT (16%) and general import tax (rates depending on the tariff code).
2. When exporting the finished product, VAT is refundable, but the process takes months and ties up cash flow.
3. Duties already paid often cannot be recovered.

This means capital locked throughout the manufacturing cycle.

How IMMEX solves it

Under the IMMEX program, a company can temporarily import inputs, materials, and machinery without paying VAT or duties, provided the goods are exported (transformed) within a defined timeframe:

• 18 months for inputs and raw materials.
• Program lifetime for machinery and equipment.
• 6 months for fuel and lubricants.

If you comply with the export within the timeframe, you never pay those taxes. If you don’t export, you pay them as a definitive import.

Who qualifies

To enroll in IMMEX, you need:

1. Be a legal entity incorporated in Mexico.
2. Be current with the SAT.
3. Importer registry and sector-specific registries depending on your industry.
4. Demonstrate operational capacity to perform manufacturing or export services: facilities, equipment, personnel.
5. Commit to a minimum annual export volume (USD 500,000 or 10% of sales, whichever is lower).

There are 5 program modalities and the choice affects your obligations:

• Industrial: full manufacturing.
• Services: export services (call centers, software, etc.).
• Shelter: acting as a “shelter” for a foreign company.
• Holding company: consolidating operations across subsidiaries.
• Outsourcing: subcontracting manufacturing to third parties.

How much you save

It depends on the product, but typical savings for an exporting manufacturer fall between 15% and 25% of imported input cost, considering:

• Deferred VAT (16%).
• Deferred duties (vary 0–20% by tariff code).
• Cash-flow improvement (no waiting for refunds).

For a company importing USD 1M annually in inputs, the cash-flow benefit is roughly USD 150–250K per year.

The complex side: compliance

IMMEX is not a one-time filing you set and forget. The authority audits constantly:

• Anexo 24 and Anexo 31 are inventory-control systems demonstrating that temporarily imported inputs were effectively used in exported product.
• Annual reports to the SAT with movement.
• Possible site visits.
• If you miss deadlines, fines and conversion to definitive import with retroactive duties.

That’s why the program works very well for companies with operational discipline and poorly for those without formal inventory tracking.

How implementation works

The typical process, from start to finish:

1. Diagnosis (1–2 weeks): we analyze whether the operation qualifies and how much it would save.
2. Documentation (3–6 weeks): file preparation for the Ministry of Economy.
3. Filing and resolution (4–12 weeks): the Ministry reviews and may request clarifications.
4. Anexo 24/31 implementation (parallel): WMS or system that meets control requirements.
5. Internal training for the foreign trade team.
6. Recommended annual preventive audit.

Realistic total timeline: 3 to 6 months from kickoff to operating with the program active.

When it doesn’t make sense

• If your import volume is low (<USD 200K/year).
• If your market is 100% domestic (you don’t export).
• If you don’t have a formal inventory system and aren’t willing to implement one.
• If your product specs change frequently (the Anexos require stable BOM coefficients).

At TradeWay

We run feasibility diagnostics and accompany IMMEX implementation (also PROSEC and Strategic Bonded Warehouse). To find out if your operation qualifies, talk to a specialist — the initial diagnosis takes 2–6 weeks and we deliver an actionable plan with costs and estimated ROI.